Bank of England cuts growth forecast

The Bank of England (BoE) has cut its growth forecast to 1.7% – down from 1.9% previously forecast in May 2017.

The BoE also reduced its growth forecast for 2018 from 1.7% to 1.6%.

This news comes as interest rates were held at 0.25% to stay in line with the 2% inflation target set by the Monetary Policy Committee.

Dr Adam Marshall, director general at the British Chambers of Commerce, said:

“In our view, the BoE forecasts are still slightly optimistic about the near-term outlook for the UK economy. We expect inflation to rise by more than the central bank is currently predicting, peaking at 3.4% this year.